Packer floats $250 m venture fund

By Our Staff Correspondent

MUMBAI, MARCH 27. Mr. Kerry Packer, the Australian media baron, has teamed up with Mr. Vinay Maloo of Himachal Futuristic Communications Ltd. (HFCL) and Mr. Ketan Parekh, a leading stock broker in the country, to launch KVP Ventures, a venture capital fund with an initial capital of Rs. 1,100 crores ($250 million).

The promoters, who will invest equally in the fund, are highly successful and accomplished entrepreneurs, having varied experience and skills. Mr. Packer owns Consolidated Press Holdings Ltd. (CPH), Australia, which has recently announced an investment of Rs. 1,039 crores in HFCL aggregating to a 10 per cent stake in the company. Mr Packer is associated with Channel Nine, the international sports channel. Mr. Ketan V. Parekh owns the brokerage firm Triumph Securities.

KVP Ventures will focus on investing in high growth and high technology areas such as information technology, software, Internet, e-commerce, telecommunications and media and entertainment. The fund will mostly look for investments in unlisted companies. Setting up an incubator for portals is also in the offing. Biotechnology will also be an area of focus. The fund believes that the Indian capital market is entering a new growth phase. It is empirically proven that buoyant capital leads to a surge in entrepreneurial talent which can only flourish with the timely availability of finance. The fund will provide a great opportunity for budding entrepreneurs to realise their goals and ambitions.

Mr. Packer said the Indian information technology industry was being recognised by the world and that `This is the place to be'. According to his son, Mr. James Packer, India is by far the largest investment made by the company and it does not envisage this kind of investment in any other country.

The fund regards `venture capitalism' as a science of identifying people with the right ideas, having faith in their abilities, supporting them with financial and other business resources and bringing a high level of commitment to the venture by being a partner through equity investment, thereby participating and sharing both risk and rewards, instead of being a mere financier, arranger or advisor.

The fund aims at promoting and funding ideas for converting them into reality and in the process generating and creating wealth for the enterprise and the entrepreneurs.

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Section  : Business
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